Review Report on the Lump Sum Grant Subvention ... - lwb.gov.hk

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equirement.5.56 The IRC agrees that projects funded by the BIP Scheme can indeed helpNGOs meet the many challenges brought about by the LSGSS. It is also reasonablethat NGOs should contribute to their own initiatives that can help them achievesavings in the long run, in particular when there is already a mechanism for waivingthe contribution requirement where justified. With the establishment of the SocialWelfare Development Fund, we recommend that the SWD consider whether NGOsshould still be required to contribute at the present or at a lower level to the projectssupported by the fund.Recommendation 27As per Recommendation 6, a new Social Welfare Development Fund should beestablished and should take over the function of the BIP Scheme. It is for the SWDto consider whether NGOs should still be required to contribute at the present or at alower level to the projects supported by the new fund.Flexibility as a development tool5.57 Flexibility, efficiency and cost-effectiveness are three pillars of the LSGSS.They are objectives that justify the introduction of the system in the first place. Atthe agency level, many BIPs are already testimony to these concepts; in the longerterm, the sector as whole may continue to perfect itself through this developmentalprocess.5.58 Flexibility, however, cannot be absolute. Under the LSGSS, there is aninternal mechanism to ensure that public expectations are met. The various schemesof control discussed in this chapter, such as the SWD’s audit process, the way servicesare allocated and regulated, etc. are all part of this mechanism. It entails, inevitably,rules and procedures aimed at setting clear parameters for NGOs to work with, so thatthey may exercise flexibility with confidence. The various recommendations theIRC has made in this regard are homing in on this same principle. For subventedNGOs, the ultimate check and balance will come from the community, as taxpayersexpect public funds to be properly spent and accounted for, and service users closelymonitor service quality. We hope that, by balancing flexibility with appropriatecontrol, all stakeholders under the LSGSS will benefit from this powerfuldevelopment tool.- 75 -
Chapter Six –Accountability and Corporate Governance of subvented NGOs6.1 Welfare NGOs in Hong Kong undertake activities that bring tremendoussocial benefits. They are non-profit making and exist to serve people in need.However, for the benefit of society, it is necessary to ensure that these organisationsare effective in their operations.6.2 Welfare NGOs are accountable to the SWD and the public for the properuse of government funds and the delivery of quality service. As responsibleemployers, they are also accountable to their staff for their welfare and development.Like all organisations, they need to perform these functions effectively, and this iswhere the concepts of accountability and corporate governance become most relevant.6.3 Corporate governance enhances corporate performance and ensures properaccountability for management in the interests of all stakeholders. As defined by theOrganisation for Economic Co-operation and Development (OECD), “corporategovernance” is the “institutionalisation of a set of relationships between a company’smanagement, its board, its shareholders and other stakeholders” 1 . Stakeholders ofwelfare NGOs in Hong Kong include the people for whose benefit the NGOs operate,the Government, individuals, corporations and other donors from where they generatefunding for their operations, society at large and their employees.6.4 In this chapter, we analyse welfare NGOs’ accountability and corporategovernance from various perspectives, such as what guidance and support theGovernment has provided, the changes that have been introduced in the sector, howNGOs’ management, board and staff may contribute, and what should be required ofNGOs in terms of financial information disclosure.Guidance and support provided by the Government and changes introduced bythe sector6.5 Chapter 5 of the LSG Manual contains advice and guidelines to NGOs inrespect of good management practices and processes which should be taken intoaccount in the performance evaluation of NGOs. They cover the areas of corporate1The OECD Principles of Corporate Governance 1999.- 76 -
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Review Rep
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ANNEXES1. Stakeholder groups which
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Government, NGOs, staff, service us
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10. Feedback is essential for the i
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issues. The resources thus released
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(c) where a project is carried out
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NGO to run a particular service, it
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following chapters. In summary, the
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Staff and had sufficient time to ad
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major events described above would
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1.31 Shortly after its formation, t
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Chapter Two --- Overall Assessment2
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enhancement. Greater autonomy and f
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and community sectors are redefined
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to develop their own human resource
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3.12 More importantly, the civil se
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Recommendation 2The Government shou
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Page 41 and 42: 3.40 The IRC considers that contrac
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Page 47 and 48: e detrimental to the professional d
Page 49 and 50: Chapter Four -Financial Issues and
Page 51 and 52: their services, and indeed a large
Page 53 and 54: Recommendation 7In view of the chan
Page 55 and 56: LSG reserves4.21 Before the introdu
Page 57 and 58: of staff. NGOs are encouraged to be
Page 59 and 60: Recommendation 11NGOs should fully
Page 61 and 62: 4.42 Indeed, the re-engineering eff
Page 63 and 64: 4.52 The LSGSC is an important plat
Page 65 and 66: the LSG, the PF provision for Snaps
Page 67 and 68: stakeholders which look to the manu
Page 69 and 70: Recommendation 16The SWD should rat
Page 71 and 72: edirected and innovative thinking e
Page 73 and 74: SWD’s audit procedures5.8 Many NG
Page 75 and 76: about the parameters set by the SWD
Page 77 and 78: Recommendation 20The SWD should rev
Page 79 and 80: with an annual subvention of more t
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Page 83 and 84: The figures do seem to support the
Page 85 and 86: their existing services.existing on
Page 87: 5.52 Many BIPs have indeed helped N
Page 91 and 92: 2001-03 : Issued booklets on five b
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Page 95 and 96: 6.17 Chapter 4 of the LSG Manual on
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Page 103 and 104: 7.11 Frontline staff have also poin
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Page 107 and 108: (iii) have obtained SWD’s prior a
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Page 113 and 114: Underinvestigation4 17 16 37Total :
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Page 121 and 122: eplenishment of F&E items costing n
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Page 125 and 126: contracts or had not yet joined the
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Page 137 and 138: Annex 1Page 2 of 343. Hong Kong Alz
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Annex IIPage 0 of 8Report</
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Australian system at that time.Anne
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Annex IIPage 4 of 8Hong Kong 2008-0
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Annex IIPage 6 of 8in reducing the
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Annex IIPage 8 of 8is consistent wi
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Annex 3Page 2 of 26. 終止合
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Annex 6Page 1 of 1Flowchart on how
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Page 2 of 9Chief Executive announce
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Page 4 of 9services operated by NGO
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Page 6 of 9Lump Sum Grant Steering
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Page 8 of 9Social Welfare Advisory
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